Kenya has the largest radio advertising market in the Middle East and Africa region, and the 14th largest in the world.
A PwC report shows that advertisers in Kenya splashed Sh35.3 billion (NGN123,09 billion: December 2017 exchange rate*) on radio ads in 2016, an increase of 9.6 percent compared to 2015.
The report predicts radio advertising to generate more revenue than Italy’s radio ad spend, a country with a bigger population and an economy 20 times larger by 2021.
The PwC Entertainment and Media Outlook report credit the success of radio advertising in Kenya to the range of radio stations allowing advertisers to reach different demographics which means targeted and more effective ad campaigns.
“Low costs and robust listenership are key pull factors to businesses looking to advertise on Kenyan stations, according to Bizna Kenya,” reads the report.
Backed by strong economic growth, the country’s TV market has grown rapidly in recent years, producing total market revenues of Sh54.9 billion in 2016 (NGN191.4billion: December 2017 exchange rate). The market is expected to grow year on year to total Sh79.6 billion in 2021, with TV advertising contributing heavily.
According to the report, TV advertising will grow to take a 67.2 percent share of the total TV market (including Pay-TV and internet video) in 2021, as multichannel advertising makes gains.
“This is despite continued growth in the pay-TV industry, with subscription revenues having nearly doubled in the past five years.”
Pay-TV revenues are expected to grow at 6.7 compounds annual growth rate from 2016’s Sh162 billion to Sh23.1 billion in 2021.
On the other hand, internet advertising is one of the fastest growing sectors in the country, with revenues expected to hit Sh23.4 billion by 2021. This will make it the third largest advertising category in Kenya.
This category has begun attracting the attention of international companies such as Swedish phone-call filtering firm Truecaller which announced in May that it would begin offering ad opportunities to local Kenyan companies on its mobile app.
Source: Capital FM